Affinity Internet Holdings goes titsup

Unravelling fast

Affinity Internet Holdings today went into administration. We understand that a massive hole has been discovered in the accounts of Affinity Internet Ltd, the virtual ISP business sold to CleverView Investments last month.

Here in full is AIH's statement released to the London Stock Exchange.

"Affinity Internet Holdings plc ('Affinity') today announces that Vivian Bairstow and Nick Hood of Begbies Traynor have been appointed as its administrators. Suspension of trading in the Company's shares was announced on 24 March 2003.

Enquiries, please contact:

Vivian Bairstow/Nick Hood

Begbies Traynor

020 7242 6939

AIH has, or had, two main operating businesses, a mobile phone network resell operation and a Virtual ISP business. The group has unravelled fast since March 11, when it sold off the assets of Affinity Internet Ltd (AIL), its Virtual ISP business, to Cleverview Investments for £250k and the assumption of debt.

On March 25, the company put its Affinity Wireless business into administration. Word on the street is that this purportedly profitable business owed millions of pounds to Vodafone, which pulled the plug on the service. ®